America's tax refund shock: Average worker to receive 29% LESS this year from the IRS - so how much should you expect?

Daily Mail ^ | 2/16/24 | Dolores Chang

[Libloather]

Millions of Americans awaiting their refund checks could be disappointed, as early data shows that average workers are receiving 29 percent less in tax refunds from the Internal Revenue Service (IRS) this year.

The average refund check through February 2 is worth $1,395, according to statistics published by the IRS on Thursday. This amount is significantly less compared to the $1,963 received on average last year.

Despite the noticeable reduction in the average refund issued this year so far, the IRS does not appear alarmed, noting that the average refund amount is likely to change in the coming months.

The tax season started on January 29 this year, and as of February 2, the IRS has only been processing returns for five days.

The 2023 filing season began on January 23 last year, giving the agency with an additional week to receive and issue refunds by the same time.

The IRS said in a release: 'Considering the loss of 7 days in this comparison, filing season statistics below show a strong start to filing season 2024, with all systems running well.'

Daniel Rahill, a CPA in Chicago, said that early filers may be receiving smaller refunds due to the fact that those who earned higher salaries in 2023 did not increase their tax withholding accordingly.

'[I]t will be an interesting analysis to see where the next wave of numbers come in once we receive more tax filing data,' he told USA Today.

Some tax experts also suggest that refunds could be much higher than last year, estimating an increase of roughly $300 to $400.

'For anybody whose income did not outpace inflation, they should do better. It's not even voodoo or marketing spin, it's pretty much just science,' Mark Steber, chief tax information officer at Jackson Hewitt, told FOX Business.

[Libloather]

I expect nothing and get nothing. The goal is to be even-steven at the end. Tried to explain this to a convenient store worker after she complained that she isn't winning the refund sweepstakes this year. Deer-in-headlights response.

[JSM_Liberty]

So smaller interest free loans to the government

[Paladin2]

How much less did I send in for the Jan. 2024 estimated Tax than last year?

Let the IRS suck on that....

[Paladin2]

She cute.

Gov’t issue?

[Libloather]

That is NOT my convenience store worker. Kinda wish it was.

[WinMod70]

Thanks for reminding me to get prepared for my wife’s annual interrogation. It usually goes something like how come we have to pay and one of her brothers is getting $K back. This has been going on for 30 years. To date, I have refrained from explaining to her that her brothers are idiots.

[trebb]

I try to owe about $100 or so at the end of the year - last year I owed over $1k and this year - after readjusting to try to get it back to my target, I owed almost $900 - my taxes went up $2k over the last 2 years...

[TexasFreeper2009]

while you are technically correct, most people have no impulse control and the refund check they get from the IRS is the only large sum of money they ever have each year.

[PubliusMM]

Or...we could stop all this silliness and pass the FairTax into law. Do away with the annual tas day BS, dump the IRS, and bring ‘shadow’ income back into the mix.
It makes sense. Not to a ravenous, uncontrolled government, or course; but, it does make sense.

[The Louiswu]

I don’t understand how this country can be so far in debt and yet give money back in tax refunds. Magic accounting I guess.

[cyclotic]

We’re the same. We generally pay a bit to the state and get a bit (of our own money) from the feds. It’s generally within $100.

[logi_cal869]

I’ve been attempting to calculate the true effect of inflation upon my real wages and, in the process, discovered that my w2 withholdings have not kept pace with my tax burden.

I highly recommend those with w2 wages file a new w4 form due to changes - iirc - between the 2019-2020 tax years.

Bottom line, I’ve calculated that my real w2 wages today - for which I receive no COLA - are equivalent to March 2020 (roughly a 20% reduction), while my federal income taxes have increased approximately 20%, and state have increased approximately the same.

Translated: M20 x 2.5 x 5x10-nth

[ridesthemiles]

PEOPLE ARE PAYING TOO MUCH IN THEIR WITH HOLDING